CONCEPT OF GRIEVANCEGrievance is a sign of an employee’s discontent with job and its value

Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice which an employee experiences about his job and it’s nature, about the management policies and procedures.

Factors

In an organization, a grievance may arise due to several factors such as:

•Violation of management’s responsibility such as poor working conditions

•Violation of company’s rules and regulations

•Violation of labor laws

•Violation of natural rules of justice such as unfair treatment in promotion

• It must be expressed by the employee and brought to the notice of the management and the organization.

•Grievances take the form of collective disputes when they are not resolved. Also they will then lower the morale and efficiency of the employees.

• Unattended grievances result in frustration, dissatisfaction, low productivity, lack of interest in work, absenteeism, etc.

•In short, grievance arises when employees’ expectations are not fulfilled from the organization as a result of which a feeling of discontentment and dissatisfaction arises. This dissatisfaction must crop up from employment issues and not from personal issues.

Individual or Collective Grievances

It is important to make a distinction between individual grievances and group grievances if the issue involved relates to one or a few individual employees, it needs to be handled through a grievance procedures .

But when general issues with policy implications and wider interest are involved , they became the subject matter for collective bargaining.

In an individual grievance redressal, trade union should have less or no role while in grievance of a collective nature and wider ramifications, trade union need to be involved.

Forms of Grievance A grievance may take any one of the following forms:

(a)Factual(b)Imaginary(c)Disguised

Factual: A factual grievance arises when legitimate needs of the employees remain unfulfilled, e.g. wage hike has been agreed but not implemented citing various reasons.Imaginary : when an employee’s dissatisfaction is not because of any valid reason but because of a wrong perception, wrong attitude or wrong information he has gathered. Such a situation may create an imaginary grievance . Disguised : An employee may have dissatisfaction for reasons that are unknown to himself if he/she is under pressure from family, friends, relatives, neighbors, he /she may come to workplace with heavy heart.

Causes of Grievance

Economic

Work environment

supervision

Miscellaneous Work group

Causes of Grievance

Causes of Grievance Grievances may occur for a number of reasons:

(a) Economic: Wage fixation, over time bonus, wage revision etc. Employees may feel that they are paid less when compared to others.

(b) Work environment: Poor physical conditions of workplace, tight production norms, defective tools and equipment, poor quality of materials, unfair rules, lack of recognitions etc.

(c) Supervision : Relates to the attitudes of the supervisor towards the employee such as perceived notion of bias, favoritism, nepotism, caste affiliations, regional feelings etc.

(d) Work group: employee is unable to adjust with his colleagues suffers from feelings of neglect, humiliations.

(e) Miscellaneous: These include issues related to certain violations with respect to promotions, safety methods, transfer, disciplinary rules, fines, granting leave ,medical facilities.

Effect of grievance

Grievance can have several effects which are essentially adverse and counter productive to organizational purpose:

(a) Loss of interest in work and consequent lack of morale and commitment

(b)Poor quality of production

(c)Low productivity

(d)Increase in wastage and costs

(e)Increase in employee turnover

(f)Increase in absenteeism

(g)Increase in the incidence of accidents

(h)Indiscipline

(i)unrest

Grievances, if they are not identified and redressed , may affect adversely the workers, managers and entire organization.

On production •Low quality of production•Low quality of production and productivity•Increase in the wastage of material, spoilage/leakage •Increase in cost of production per unit

On employees:

•Increase the rate of absenteeism and turnover•Reduces the level the level of commitment , sincerity and punctuality•Increases the incidence of accidents•Reduces the level of employee morale

On managers:

• Strains the super-subordinate relations•Increases the degree of supervision, control and follow up•Increase in disciplinary action cases•Increase in unrest and, thereby, machinery to maintain industrial peace.

Recommendations of the National commission on labour

The national commission on labour has given a statutory backing for the formulation of an effective grievance procedure which should be simple , flexible, less cumbersome, and more or less on the lines of present Model Grievance Procedures.

It should be time bound and have a limited number of steps.

The discovery of Grievances:

The knowledge of grievance is important in handling them. Upward channels of communication provide the dependable sources for discovery of grievance. Some of the important ways of discovering grievances are briefly outlined here:

(a)Director observation : A good manager can usually track the behavior of people working under him. If a particular employee is

•Not getting alone with people , •Spoiling materials due to carelessness and recklessness , •Showing indifference to commands , •Reporting late for work,

the signals are fairly obvious. Supervisor can easily spot such unusual behaviors and report.

Grievance Procedure: A systematic grievance is the best means to highlight employee dissatisfaction at various level ,Management , to this end , must encourage employees to use it whenever they have anything to say.Otherwise, it will take ugly shape and erupt in violent forms.

Gripe Boxes: A gripe box may be kept at prominent locations in the factory for lodging anonymous complainers pertaining to any aspect relating to work.

Open Door Policy: this is a kind of walk-in –meeting with the manager when employee can express his feelings openly about any work-related grievance.

Exit Interview : Employee usually leave their current jobs due to dissatisfaction or better prospects outside.

Other channels?

Grievance management In Indian Industry

There are three legislation dealing with grievances employees working in industries.

1.Employee Standing order Act 19462.Factories Act 19483.Industrial dispute Act 1947

In India, a model Grievance procedure was adopted by Indian Labour conference in its 16th session held in 1958.

At present , the Indian Industries are adopting either the Model Grievance procedures or procedures formulated by themselves with modifications in the Model Grievance Procedures.

Guideline for Handling Grievances:

The following guidelines may help a supervisor while dealing with grievance.

• Treat each case as important and get the grievance in writing•Talk to employee directly . Encourage him to speak the truth. Give him a patient hearing•Discuss in a private place. Ensure confidentially if necessary• Handle each case within a time-frame• Examine company provisions in each case, Identify violations, if any, Do not hold back the remedy if the company is wrong. Inform your supervisor about all grievance.

•Get all relevant facts about the grievance , examine the personal records of the aggrieved worker. See whether any witnesses are available . Visit the work area. The idea is to find where things have gone wrong and who is at fault.

• Gather information from the union representative, what he has to say, what he wants etc. Give short replies, uncovering the truth as well as provisions. Treat him properly.

•Control your emotions, your remark and behavior

•Maintain proper records and follow up the action taken in each case

Essentials of good grievance procedure

• Legality Sustainable : It should be ensured by the organization that its grievance procedure is in conformity with the existing laws of nation.The procedure cannot violate any of the rights of the employees guaranteed by the law.

•Mutual acceptable:

In order to be effective , the grievance procedure must enjoy the confidence of all the relevant parties. Namely , the management and the unions. It should not be like a battleground , procedure must ensure equity, justice and openness.

• Easily Understandable: The grievance procedure must ne reasonably simple and easily understandable.

Known to all the employee of the organization.If someone has some grievance in his hand should know who is to be contact .

• Highly Flexible: The grievance procedure should be flexible enough to respond to the reported grievance quickly. The number of stages in the grievance procedure should be kept to the minimum.

Sufficiently Knowledgeable: The Managers, supervisors, union leaders and other dealing with employee grievance must be well-trained in the grievance handling procedure.

Need for a Grievance Redressal procedure:-

• In absence of grievance Redressal procedure, an employee could either keep his dissatisfaction to himself or share with his colleagues. If he has no means of express he will get frustration.

• If the settlement does not satisfy at the first level he can approach next level.

• Grievance procedures keep a check on arbitrary action.

• Grievance procedures help in upward communication.

• A good grievance redressal harmonious industrial relations as employee grievances are settled before they turn into industrial conflict.

The guiding principles are :-

1. Conformity with existing legislation: A grievance procedure should be acceptable to both the management and employees also should conform to the existing legislation of the firm.

2. Simple and expeditions machinery: when a grievance arises, it has to be settled at the lowest possible level in the redressal procedure.

3. Employee knowledge of grievance procedure: employees should have thorough knowledge about grievance procedure. They should know whom to approach.

4. Constitution of the grievance committee: The grievance committee consists of two representatives from management and two from union one from same department in which the concerned employee works.

Model Grievance Redressal procedure

Voluntary Arbitration

Committee of union and management representatives

Managers

Grievance Committee

Departmental Representatives

Departmental Representatives

Grievance Employee

Head of the Dept.

supervisor

Foreman

VI Settlement within 7 days

V Management’s decision on revision 7 days

IV Decision within 7 days

III Decision within 7 days

II Decision within 3 days

I Stage Response within 48 hours

VerballyNS

NS

NS

NS

NS

NS

NS

NTPC Grievance Procedure (for executives)

Issue:NTPC management believes in open door policy in the matter of redressal of Grievances.

Scope and Coverage

The procedure will cover all executives of the company up to levels of DGMs.These few matters can be appeal by an aggrieved executive are • Salary payment•Recoveries of dues etc •Increment•Working conditions•Leave•Allotment of quarters •Medical facilities•Non-extension of benefits under rules•Transfer•Promotion•Like Issues

Procedure:Stage-I

The aggrieved executive shall take up his grievance orally with his immediate supervisor (not the below rank of deputy manager) who will give a personal hearing and try to resolve the grievance at his level within 7 days.

Incase the executive is not satisfied, he can submit his grievance in writing in Form with in 15 days from the date on which the act of grievance arose or came to the notice of the HOD concerned.

The Head of department concerned will record his comments on the grievance from within 7 days after making necessary enquiries/obtain necessary guidelines from other departments.

Stage II

In case the executive is not satisfied with the decision communicated to him at stage I or if he fails to receive the reply within the stipulated period, he may submit his grievance in the prescribed form within a period of 15 days to a staff council in the project/regional offices / corporate Centre.

The council will consists of GM/Head of the project or office, the concerned HOD of the aggrieved executive, Chief Finance Manager or the Head of the Finance in the project/Office at project or Region office.

Executive Director , Head of the department concerned and Financial Controller and GM (HR) DGM (HR)

Stage III

In exceptional cases, The aggrieved executive who is not satisfied with the decision will have an opinion to appeal to the CMD. The CMD will take decision and communicate the same within 30 days from the receipt of appeal and his decision will be final and binding.

NTPC Grievance Procedure (For Non-Executive )

Stage I

An aggrieved employee may in the first instance meet his immediate superior and present the grievance orally to him.In case he is not satisfied , he can present his grievance in the prescribed form to the concerned HR officer with in 15 days from the date on which the act.

The concerned HR officer after making necessary enquires will give reply to the aggrieved employee within a time period of 10 days.

Stage II

In case the employee is not satisfied with the decision communicated to him at stage I or fails to receive a reply within the stipulated period, he/she may submit his grievance in the prescribed form within a period of 15 days to the Head of the department for the latter’s consideration.

Stage III

At this stage the grievance will be looked into by a Grievance Committee, to be constituted by the respective general managers for the projects/units and by General manager for corporate Centre, consisting of following :

An executive not below the rank of Sr. manager in case (Chairman)

The former is not readily available

Accounts and finance department executive (Member)

Sr. Hr officer ( Secretary )

Appeal

In case the employee will remain dissatisfied even after Stage III, he may be appeal to GM of the Division within period of 10 days from the date of receipt of the decision from the Grievance committee.

The Grievance Redressal Mechanism for Health –Care organizations

There is no hard and fast rule available to govern the functioning of a grievances redressal system except that it should not violate any statutory provisions of the country.

Following steps for a grievance handling mechanism for hospital organization:

• When the grievance pertains to an individual employee

•He should verbally represent his grievance to his immediate supervisor. Who should provide the solution within a day if the grievance relates to emergency leave, health problems similar matters that require immediate attention

• within three working days if the grievance relates to matters that do not need immediate attention.

• if the immediate supervisor is unable to settle the Grievance, the employee should be allowed put up his grievance, in writing, to the head of the department or section.

•The HOD concerned should settle the grievance himself within the next three working days or call the workman along with his immediate supervisor and try to resolve the grievance .

•If the matter is still unsolved, it should be discussed jointly by the HOD and the HR department in a attempt to resolve the grievance.

•If grievance remains unsolved, the matter should be taken up with the chief executive and his decision in the matter should be binding on all concerned

Definition and concept of Discipline.

Discipline is employee self-control which prompts him to willingly co-operate with the organizational standards, rules, objectives, etc.

Aim and Objectives of discipline

▪To ensure and enable employees to work in accordance with the rules and regulations of the organization.

▪To ensure that employees follow the organizational processes and procedures in spite of their different personalities and behavior.

▪To provide direction to the employees and fix responsibilities

▪ To improve organizational performance by improving the efficiency of each employee.

▪To maintain a sense of orderliness and confidence in the employees towards each other and towards the management. ▪To maintain common feelings of trust and confidence in the employees towards each other and towards the management.Disciplinary Procedure The different stages in the disciplinary procedure of an Indian organization are discussed below: Forming and issuing a charge sheet: When the management of an organization wants to initiate an enquiry against an employee for alleged misconduct, the concerned employee is issued a chargeSheet..

The charge sheet should clearly indicate the charges against the employee and seek an explanation for the employee’s misconduct.Considering the explanation: if the employee admits his misconduct or if the management is satisfied with the explanation offered by the employee in response to the charge-sheet, there is normally no further enquiry

Issuing the notice of enquiry: If it is decided that an enquiry be held. A notice of enquiry has to be issued to the worker. The notice must mention the time, date and place of enquiry. An enquiry officer is also appointed, preferably a person who has good knowledge in law.

Holding a Full-fledged Enquiry: The enquiry should be in conformity with the principles of natural justice and the employee concerned must be given an opportunity to be heard.If it felt that the offence is serious or that the employee concerned might influence the enquiry proceedings, he might either be asked to go on leave or may be suspended with out pay, pending enquiry.

Final order of Action: The appropriate authority, based on the findings of the enquiry officer, makes the judgment. He either acquits the employee or judges him guilty of the charges. Based on the decision taken, the punishment for employee’s misconduct is determined. Before that manager should consider the employee’s previous record. In case the employee feels that the enquiry is biased or improper and that the disciplinary action is unjust, he should be given a change to make an appeal.Follow-up: After administering disciplinary action, there should be proper follow-up .The punishment for misconduct should be conveyed to the employee.

Mc. Gregor’s Red Hot stove Rule:

One effective way to approach the disciplinary process is to follow what is popularly known as the red hot stove rule.

It suggests that administering discipline is more like touching a hot stove.

According to Mc. Gregor action should be immediate, impartial, and consistent with a warning like the results of touching a red-hot stove.

Immediate: The burn received when a person touches a red hot stove, like that an employee should be made to realize immediately if he or she is going against the norms or the rules.

Impersonal: Regardless of who touches it, the stove causes burns. In the same way the rule applied for a particular act of indiscipline should reflect the offense and not the person who committed it.

Consistent: every time a person touches a red-hot stove he receives burns. That is the results are consistent. In the same way discipline should be enforced and ensured across every employee and every situation.

Foreseeable: The red hot stove the individual through the heat it generates, that it will burn if touched. Same way employees should made aware that poor conduct or indiscipline will result in specific, pre-determined consequences.

An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation.

A sound industrial relations is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust.

Industrial Relation

Actors in the IR system:

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions.

Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal courts.

The main objectives of industrial relations are:-

•To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production.

•To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.

•To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.

Objectives of Industrial Relations

To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well.

To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits.

To improve the economic conditions of workers in the existing state of industrial managements and political government.

Socialization of industries by making the state itself a major employer Vesting of a proprietary interest of the workers in the industries in which they are employed.

The healthy industrial relations are key to the progress and success. Their significance may be discussed as under –

•Uninterrupted production – The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.

Importance of Industrial Relations:

•Reduction in Industrial Disputes – Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production.

High morale – Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry.

The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied.

It naturally affects production because mighty co-operative efforts alone can produce great results.

Mental Revolution – The main object of industrial relation is a complete mental revolution of workers and employees.

The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy.

Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employer’s authority. It will naturally have impact on production because they recognize the interest of each other.

•Reduced Wastage – Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits.

It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace.

If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.

One of the significant theories of industrial labor relations was put forth by John Dunlop in the 1950s.

According to Dunlop industrial relations system consists of three agents – management organizations, workers and formal/informal ways they are organized and government agencies. These actors and their organizations are located within an environment – defined in terms of technology, labor and product markets, and the distribution of power in wider society as it impacts upon individuals and workplace.

Within this environment, actors interact with each other, negotiate and use economic/political power in process of determining rules that constitute the output of the industrial relations system

He proposed that three parties—employers, labor unions, and government-- are the key actors in a modern industrial relations system.

He also argued that none of these institutions could act in an autonomous or independent fashion. Instead they were shaped, at least to some extent, by their market, technological and political contexts.

Thus it can be said that industrial relations is a social sub system subject to three environmental constraints- the markets, distribution of power in society and technology.

Dunlop's model identifies three key factors to be considered in conducting an analysis of the management-labor relationship: Environmental or external economic, technological, political, legal and social forces that impact employment relationships. Characteristics and interaction of the key actors in the employment relationship: labor, management, and government. Rules that are derived from these interactions that govern the employment relationship.

Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of industrial relations may be regarded as a system in the sense that each of them more or less intimately affects each of the others so that they constitute a group of arrangements for dealing with certain matters and are collectively responsible for certain results”.

In effect - Industrial relations is the system which produces the rules of the workplace. Such rules are the product of interaction between three key “actors” – workers/unions, employers and associated organizations and government

The Dunlop’s model gives great significance to external or environmental forces. In other words, management, labor, and the government possess a shared ideology that defines their roles within the relationship and provides stability to the system.

In unitarism, the organization is perceived as an integrated and harmonious system, viewed as one happy family.

A core assumption of unitary approach is that management and staff, and all members of the organization share the same objectives, interests and purposes; thus working together, hand-in-hand, towards the shared mutual goals.

Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees. Trade unions are deemed as unnecessary and conflict is perceived as disruptive.

Unitary Perspective

From employee point of view, unitary approach means that:

Working practices should be flexible. Individuals should be business process improvement oriented, multi-skilled and ready to tackle with efficiency whatever tasks are required.

If a union is recognized, its role is that of a further means of communication between groups of staff and the company. The emphasis is on good relationships and sound terms and conditions of employment.

Employee participation in workplace decisions is enabled. This helps in empowering individuals in their roles and emphasizes team work, innovation, creativity, discretion in problem-solving, quality and improvement groups etc. Employees should feel that the skills and expertise of managers supports their endeavors.

From employer point of view, unitary approach means that:

Staffing policies should try to unify effort, inspire and motivate employees. The organization's wider objectives should be properly communicated and discussed with staff. Reward systems should be so designed as to foster to secure loyalty and commitment. Line managers should take ownership of their team/staffing responsibilities. Staff-management conflicts - from the perspective of the unitary framework - are seen as arising from lack of information, inadequate presentation of management's policies. The personal objectives of every individual employed in the business should be discussed with them and integrated with the organization’s needs.

In pluralism the organization is perceived as being made up of powerful and divergent sub-groups - management and trade unions.

This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable.

Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination.

Trade unions are deemed as legitimate representatives of employees. Conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and if managed could in fact be channeled towards evolution and positive change. Realistic managers should accept conflict to occur.

There is a greater propensity for conflict rather than harmony.

Pluralistic-Perspective

They should anticipate and resolve this by securing agreed procedures for settling disputes.

The implications of this approach include:

The firm should have industrial relations and personnel specialists who advise managers and provide specialist services in respect of staffing and matters relating to union consultation and negotiation.

Independent external arbitrators should be used to assist in the resolution of disputes.

Union recognition should be encouraged and union representatives given scope to carry out their representative duties

Comprehensive collective agreements should be negotiated with unions

This view of industrial relations is a by product of a theory of capitalist society and social change. Marx argued that:

•Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism.

•Capitalism would foster monopolies.

•Wages (costs to the capitalist) would be minimized to a subsistence level.

•Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident.

This perspective focuses on the fundamental division of interest between capital and labor, and sees workplace relations against this background.

It is concerned with the structure and nature of society and assumes that the conflict in employment relationship is reflective of the structure of the society.

Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital.

Industrial Disputes Prevention Machinery

1. Worker Participation

2. Employee Grievance Redressal Machinery

3. Voluntary Arbitration (Third party for settlement)

4. Conciliation (an agreement between the two parties by offering advice. Conciliation officer of Industry or Board of Conciliation by Govt.

5. Court of Enquiry (only assists the process of conciliation does not have any power to give its verdict)

Industrial Disputes Prevention Machinery

6. Tripartite Bodies (Indian labor conference, standing labor committee, and industrial Committees help the Government in settling industrial disputes through agreements. )

7. Adjudication :- providing guideline to management and the employee

i. Labor courts (constituted by the state government)

ii. Industrial Tribunals (within jurisdiction of labor courts)

iii. National Tribunals (dispute more than one state)

Collective Bargaining

Collective Bargaining takes place when a number of work people enter into a negotiation as a bargaining unit with employer with the object of reaching an agreement on the conditions of the employment of work people.

Features of Collective Bargaining:-

Activity in level Group Activity Flexibility Win-win situation Builds Relationships An Art and a Science

Collective Bargaining Process

Preparation for negotiation:The first step in the process of collective bargaining is to make the necessary preparations to negotiate a contract. Both the demand parties should have a clear understanding and interpret the existing contract completely to identify

the problems. Negotiation: The negotiation process begins with

submission of the demand of the trade union to the management. The demands are usually on the higher side-a little more than what employee actually want. The management also employs the same tactics and starts negotiation i.e, offering something some thing less than

what it has in mind.

Contract Administration: The labor management relations in firm determine the success of administration of contract. The administration is not as dramatic as the process of negotiation itself and therefore does not draw equal attention.

The terms of the contract and the agreement reached have to be widely circulated among all the employees.

One of the key elements of a contract would be the procedure for handling industrial disputes.

Prerequisites for a Effective Collective Bargaining

▪ Unanimity among workers: Before entering into negotiations, there must be unanimity among workers. At least the representatives of workers should be able to present the opinion or demands of majority of workers or else, the management can take advantage of diverse demands of the workers.

▪ Strength of both the parties: Both the parties in negotiations should be equal in strength. One party dominating the other is against the whole nature of collective bargaining. It should always give & take process.

Attitudes:

▪The attitudes of the parties should always be positive

▪The parties involved in collective bargaining should be prepared to give away something in order to gain something.

▪Both parties to collective bargaining should observe and follow the terms and conditions of previous agreements that are reached

Representative Authority

▪The representatives of both parties should fully understand and be clear about the problems and their implications. They should be given some authority in the process of negotiations.

▪The workers can make effective use of collective bargaining process to achieve participative management and good working conditions.

▪The parties concerned should have mutual trust and confidence and respect for each other and also show willingness to settle matters through negotiations.

▪The process of bargaining should be free from unfair practices and conflict

▪Each party should respect rights and responsibilities of the other party.

Bargaining Issues

▪ Wages and working conditions

▪ Work Norms

▪ Incentives payments

▪ Job Security

▪ Changes in Technology

▪ Work tools, techniques and practices

▪ Staff transfers and promotions

▪ Grievances

▪Disciplinary matters

▪Health and Safety

▪Insurance and benefits

▪Union recognition/activities/responsibilities

▪Management rights

Workers’ Participation In Management

It’s a formal method of providing opportunity for every member of the organization to contribute his brain and ingenuity as well as his physical efforts to the improvement of organizational effectiveness.

The concept of workers’ participation aims at providing an opportunity to the workers to take part in the management decision –making.

The degree of influence that workers are allowed to exercise , can be classified into five levels:

1.Informative participation: At this level of workers’ participation, information regarding the balance sheet, production targets, new technology introductions etc, is shared with the workers.

2.Consultative participation: Worker representatives in different forums like work committees and joint management councils are consulted on matters such as employee benefits, employee welfare and work conditions.3. Associative participation: the management is under a moral obligation to accept and implement the unanimous decision of the workers council. 4.Administrative participation: In administrative participation, the workers’ council is given certain alternatives from which it can select the one it wants to implement. 5. Decisive participation: At this level, decisions are taken jointly on matters relating to production and welfare. As the decisions are taken with the mutual consent, both the parties are obliged to abide by them, and the decisions are successfully implemented.

Trade Unions.Trade unions play an important role in industrial relations. They are

groups of worker representatives who fight for the betterment of workers.

Function of Trade unions :a. Militant or intramural functions: Under this functions, trade unions

fight with employers to achieve economic interests of their members. the issue may be better working conditions and other employment related concerns like fair wages, job security, balancing work hours etc.

b. Fraternal or extramural functions: Another set of activities performed by trade unions aims at rendering help to its members in times of need, and improving their efficiency. industrial and diffuse education and culture among their members. They take up welfare measures for improving the morale of workers and generate self confidence among them.

They also arrange for legal assistance to its members, if necessary. Besides, these, they undertake many welfare measures for their members, e.g., school for the education of children, library, reading-rooms, in-door and out-door games, and other recreational facilities. Some trade unions even undertake publication of some magazine or journal. These activities, which may be called fraternal functions, depend on the availability of funds, which the unions raise by subscription from members and donations from outsiders, and also on their competent and enlightened leadership.

c. Social functions: Trade unions involve themselves in various activities to serve a social cause and accomplish their social responsibility towards different sections of the society.

d.Political Functions: Under these functions, trade unions associate themselves with a political party, get affiliated to the party and help it by enrolling members, campaigning for it during the elections, collecting donations etc.

e. Ancillary Functions: Communication of the union ideology , welfare activities, education and research are the important ancillary functions of a trade union.

Issues of Trade union:The problems faced by Indian trade unions are discussed in details here:Uneven Growth of Unionism: Uneven growth has been a major problem for trade union in India. Most trade union activities take place in large industrial sectors involving manual labour and in industrial centers of big states.Small Size of Unions: According to the Trade union Act of 1926, any seven workers can form a registered union.▪The trade unions have ignored the increasing number of women in the workforce and restricted their participation in the union and its activities. ▪ The basis for the formation of a trade union organization in India is the factory or the employment unit.

▪ The process of unionization started with the big employers and slowly spread to the smaller employers.

▪ The average membership has further declined when multiplicity of unions occurred.

Financial Weakness: A large part of the income of trade unions comprises of the membership fee. The annual income of different trade unions has been very low in India.

Multiplicity of unions: There are thirteen central Trade unions in India. Like Indian National Trade Union Congress (INTUC), All India Trade Congress (AITUC), Centre of Indian Trade Union (CITU)

It can been seen that multiple unionism is a major problem faced by Indian trade unions. One of the main causes of multiple unionism is political interference in Trade union activities. Politicians, involved in trade unions and their working, show more interest in increasing their influence rather than the improvement of the trade union movement.

Inter-Union Rivalry: Every industry in India has parallel trade unions.For example, the Indian railwaymen’s are the two parallel unions of Indian railways.The basic reason for inter-rivalry is the existence of multiple unions and non-existence of any formal legal code in the country to recognize a single union as the only bargaining agent.Leadership Issue: The Indian trade union movement has been closely associated with political parties from the beginning.Politics and unions:

The Indian Trade Unions Act of 1926 defines a trade union as any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen or between employees and employers or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.